Rising food costs drive shop prices higher

05.03.2008

Shop price inflation increased sharply in the UK during February as food costs continued to grow, according to data from the British Retail Consortium.

The BRC's shop price index jumped 1.3% on the year last month as food prices rose 4.6%, the biggest hike since the survey began at the end of 2006.

The index had risen 1.2% in January as annual food price inflation came in at 3.9%.

Non-food retail prices fell for the fifteenth month in a row during February, dropping 0.3% last month after a 0.2% decline in January.

"There are no signs that this trend is going to change," said BRC director general Stephen Robertson. "Retailers are suffering the effects of some unavoidable rising costs, such as higher global commodity prices."

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